Jason Veitch
As tourism numbers continue to climb post pandemic, many South Africans will be readying for a year-end international break over the festive season. To ensure as stress-free trip as possible, it is critical to ensure the right travel insurance is in place.
In the 2023 financial year, the Airports Company South Africa (ACSA) reported a steady increase in passenger numbers with a total of 27.2 million passengers travelling through its airports in the 2023 financial year end, compared to 23.1 million the same period two years prior.
Commenting on this is Jason Veitch, Head of Travel Insurance at Travel Insurance Consultants (TIC) – a division of Santam Group, who says he is optimistic about the consistent upswing in air travel numbers both locally and globally. He notes that international travel from South Africa is a big driver with travel agent Flight Centre citing that 86% of its bookings in 2023 were for international trips.
Veitch cautions that it is especially critical for holidaymakers travelling abroad to invest in a comprehensive travel insurance policy to be prepared for any unexpected setbacks. One of the most pressing of which is medical insurance.
“Medical claims are the most claimed benefit of a travel insurance policy, accounting for 80% of claims submitted and 62% of the total cost of claims. This is followed by cancellation at 15% and travel delay and luggage loss at 5%,” says Veitch.
He said the trend is exacerbated by medical inflation across the globe, with Aon predicting that the global average medical trend rate is expected to remain in the double digits, at 10%. “We have also noted an exponential increase in injury claims and respiratory related ailments since the Covid-19 pandemic.”
According to Veitch, TIC have also witnessed several disruptions in the travel industry in recent years such as the increasing effects of the climate crisis, geopolitical tensions as well as the fluctuations of the economy. “Airlines are grappling with fluctuating fuel prices, leading to occasional flight cancellations and missed connecting flights. While airlines try their best to accommodate passengers, the solutions may not always align with the passenger’s itinerary, or their budget," cautions Veitch.
Veitch emphasizes three critical reasons for purchasing a travel insurance policy: the high cost of medical treatment abroad, the potential significant financial loss should things go wrong, or a holiday be cancelled, and the relatively low cost of a travel insurance policy compared to the potential expense of not having comprehensive coverage.
When purchasing a travel insurance policy, Veitch advises South African travellers to:
- consider the medical limits on the policy,
- never incur a significant expense without confirming with the travel insurance provider,
- understand the terms and conditions of the policy, and
- appreciate the value of using a travel agent for travel arrangements.
"Everyone deserves to have a wonderful, stress-free travel experience. This is made more possible when the traveller plans properly and purchases the correct travel insurance policy," Veitch concludes.
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